The Latest Profit And Loss Trends In The Bitcoin Market

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

In today’s Daily Dive, we cover the latest profit and loss trends in the market looking at various on-chain metrics and dynamics, across spent output profit ratio (SOPR), long-term holder cost basis, spent volume and long-term holder MVRV (the deviation between market value and realized value).

First up is the spent output profit ratio, which tells us the degree of realized profit or loss for all coins moved on chain. When SOPR trends higher, profits are being realized (value greater than 1). When it trends lower, losses are being realized (value less than 1). We use ”adjusted SOPR” which ignores all outputs within a lifespan of less than one hour.

During the 2020 Q4 price move-up, we saw strategic profits being taken which is more evident when looking at just long-term holder SOPR. After a higher period of profit taking then and realizing losses in the summer, we’re in a tighter compressed profit and loss range of less than 3% to 5%, signaling that the market is waiting for bitcoin’s next move.


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